In the report, which is also sponsored by the Royal Bank of Scotland, Capgemini makes one of its key findings on blockchain technology:
Blockchain technology has the potential to improve the efficiency of financial transactions worldwide and to transform the global financial network. The technology could accelerate the velocity of money, and provide a path for legacy banking systems to interoperate, greatly improving efficiency. Central banks, financial institutions, and technology firms are discussing and investigating the opportunities and challenges in using the technology.
The consulting firms that immediate payments system technologies such as blockchain tech will increasingly be the way to service customer demands.
Capgemini notes in the report that financial regulators will need to make sure there is harmony among the objectives of different regulations on new technologies like blockchain. The research team obviously think that some regulators are over-reaching:
The current regulations governing virtual currencies are restricting growth. New York’s Department of Financial Services (DFS) has established a virtual currency regulatory framework, commonly know as the Bit-License and other US states are also considering releasing guidelines.
The report highlights that global banks and financial technology firms are conducting more research into blockchain technology.
Banks and technology firms are showing more interest in adopting blockchain technology due to potential to reduce costs and improve product offerings. The use of distributed ledgers has the potential to disrupt the payment industry in the near future.
Capgemini sees blockchain tech as key to transformation to immediate payments solutions, particularly through messaging standards innovations:
…messaging standards have progressed from the standard SWIFT MT messages through to the ISO 20022 and XML standards, which are richer formats and enable more functionality. The transformational aspect of messaging standards will come with the blockchain messaging convention and PSD II enabling APIs, which will standardize the messaging format for the transaction processing systems.
Capgemini concludes that banks, in developing holistic solutions, need to adapt to to a changing technology landscape with innovations like blockchain technology.
In the report, the French firm reveals its estimation on the hidden payments market in 2014.